Madrid property deal involving football stars delayed until 2027

Telco Building, a publicly traded real estate investment company, is behind the deal. It is backed by private banker Paul Gomero Vaquero, who also has involvement in the acquisition of the Teatro Príncipe Pío and the Mercado de San Miguel. Gomero Vaquero controls 10% of Telco Building through the SPV TEF Madrid, established five years ago.

Several prominent footballers are investors in the socimi, including Luka Modric, Luis Enrique, Mikel Arteta, Kepa Arrizabalaga, David Silva, Asier Illarramendi, Nacho Monreal, Santi Cazorla, and Neto Murara.

The building, which belonged to Telefónica until the end of 2021, is part of an agreement signed in 2003 that changed its zoning from infrastructural to residential. This change has significantly increased property values in Madrid.

The sale has a private purchase agreement in place, but the finalization is contingent on the Madrid City Council approving the segregation of the property from an adjacent building. The property consists of two buildings on the same plot: one built in 1950 (5,752 square meters) and another in 1980 (5,473 square meters).

The lack of progress from the City Council has led to repeated extensions of the agreement between Telco Building and Telefónica. The latest amendment, signed in September, sets a final deadline of March 29, 2027, for the segregation.

Alongside the sale agreement, the lease agreement under a sale & leaseback arrangement has also been extended. Telefónica will remain a tenant until March 2027, generating €1.55 million in net revenue for Telco Building in 2025, up from €1.26 million the previous year. This contributed to a net profit of €437,781.78 for the company in 2025, compared to €180,965.78 in 2024, allowing for a dividend payment of €394,003.62.

Currently, €18.25 million remains outstanding for the property purchase, representing 50% of the total acquisition price of €36.5 million. Additional loans of €10.72 million from shareholders at 6% annual interest have also been secured. The socimi plans to repay these debts with shareholder funds once the segregation is complete, followed by refinancing with a long-term bank mortgage. The property, which can be used for residential, hotel, or office purposes, is located near Paseo de la Castellana and Azca, and the footballers’ socimi intends to fully renovate the building after Telefónica’s departure in 2027, before seeking to sell it for a profit.